Embedding Efficiencyin your)business 26 Feb...
Transcript of Embedding Efficiencyin your)business 26 Feb...
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26 Feb 2015
Embedding Efficiency in your business
Resilient and Compe77ve TCF through Energy and Materials Efficiency
The project is funded by Sustainability Victoria’s Smarter Resources Smarter Business program and delivered by the Council of Textile & Fashion Industries of Australia Limited (TFIA)
Presented by Andrew Chamberlin
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Introductions
1. Where are you from 2. Energy and Materials Efficiency in your business
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OBJECTIVES Increase knowledge and skills…
■ how to identify the impact of energy and resource costs on the business.
■ develop and manage systems to monitor energy and resource costs
■ assess energy and resource efficiency opportunities
■ Engage staff in adopting new energy and materials efficient processes.
■ develop simple, prioritised and costed efficiency action plans
Purpose of the Program
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Introduc7on
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TODAY:
Finish with improved skills to:
– assess energy and resource efficiency opportunities
– engage staff in adop-ng new energy and materials efficient processes
Purpose of the Program
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Agen
da
Agenda:
– Review – Embedding the Program:
• Engaging Staff • Training and development • Innovation
– What can you do today
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SUSTAINABILITY IS: ■ Better Environment ■ Social Outcomes ■ Profitable Business employing people ■ Sustainability is about long term
prosperity
(triple bottom line, intergenerational equity)
Sustainability and Efficiency
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7 Principles of eco-‐efficiency
1. make more stuff with fewer inputs 2. make more stuff with less energy 3. make more stuff with less poisonous waste
4. make the stuff recyclable 5. make stuff out of stuff that won’t run out 6. make stuff that lasts
7. meet demand with a service and not with stuff
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Reducing risks
Reducing costs
Increasing short-term revenues
Increasing long-term revenues and value
FY01 FY02 FY03 FY04 FY05 FY06 FY07 NOW & BEYOND
VALUE* TO
GROUP ($)
TIME
* Adapted from DowseCSP building on PwC tangibles value hierarchy and McKinsey & Co intangibles generic model.
Source: Investa
Business Sustainability Roadmap
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Efficiency & Supply Chain
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Energy and Waste Hierarchies
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Savings Impact on Profit
Eco-efficiency Savings directly increase Profit:
Given 5% Margin: $1,000 of Savings equates to
$20,000 of Sales!
What do you need to do to have that same impact on Sales? How many units would you need to sell? How long would that take?
Would you need extra people, systems, space?
What is the long-‐term impact of that extra margin on your business?
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Savings Impact on Greenhouse
Eco-efficiency savings directly decrease greenhouse emissions!
1MW of Savings equates to over 1 tonne of GHG emission
reduc7ons!
Diesel, waste..
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• Measuring current resource use • iden7fying the areas of your business that need improvement
• planning and • implemen7ng efficient and sustainable business prac7ces
• and then remeasuring to see the savings.
Resource Efficiency Process
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Monitoring & Benchmarking?
What is your approach?
Know how I compare to other
businesses
No monitoring
Have a Spreadsheet Know how much I use per unit
Regular repor-ng and analysis
monitoring
benchmarking
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Opportuni7es and Audits?
As complex as you like.
Independently Cer7fied Audit
Scheduled inspec-ons
Structured Walk-‐through assessment
Desktop: Checklist
Sugges-on box, staff consulta-on
Mass Balance
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Opportuni7es -‐ Process Flow
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■ DIY, Simple level, prompted questions, desktop
■ answers dictate the action:
Opportuni7es: Checklist
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■ DIY, Walk around, look differently at operations:
■ Own Pace: As time permits, by department, 80:20 Rule
Opportuni7es: Walk-‐through
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Poten7al Savings
■ Prioritising ■ Boot-Strapping
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Cos7ng: Simple Payback
Replace 400W metal halide with T5 Fluorescent 80W mo-on sensor and light sensor Based 10hr day, 5 day week, 48wk year @ $0.15c kWh 400W Metal Halide Total annual energy consump-on = 960 kWh Annual Running cost = $144 Fluorescent T5 80W Fi\ngs Total annual energy consump-on = 192 kWh Annual Running cost = $28.80 Annual Saving = $144 – $28.80 = $115.2 each year Fi[ng cost $180 and installa-on $80 = $260 Simple Payback = 2.25 years. Other Benefits not costed?
Addi-onal Savings from Sensor Opera-on = extra 10% per hour per day lights off Demand Saving of 320W, Be_er Bulb Life = Less Replacements = Less scissor lias
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Ac7on Who Helpers Start Finish Budget
Develop Start-‐up Procedures
Produc-on Manager
Machine Operators
1/3/15 14/12/14 & Ongoing
$0
Source Plas-c Baler for recycling
Person A Person B 1/3/15 1/4/15 $0
All Film into Plas-c Bales
Sec-on Managers
All Staff 1/4/15 ongoing $0
Opportuni7es to Ac7on
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■ Are there opportunities in your business to make savings through energy, water or waste efficiency?
■ Can any of those be done straight away?
Discussion
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Key ingredients?
An efficiency program in your business?
It takes leadership It takes a champion It takes a commitment It takes a plan
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Don’t make it another thing to do – make it a part of what you do.
“We are passionate about making good product sustainably”
Part of what you do.
Don’t make it another department – make it a part of every department
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Staff Buy-‐in?
An efficiency program in your business?
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Staff buy-‐in
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Look for skills? Work with people’s exper-se ini-ally Provide support and training
Clear, ac-onable, Tangible, prac-cal, address knowledge, report back
On the agenda at toolbox talks Graphs on no-ce boards In role descrip-ons • “Energy manager” • “materials manager” • “innova-on manager”
Vision
WIIFM
Ac-on Plan
Skills
Resources
Incen-ves? Fun? Recogni-on? Job Sa-sfac-on?, Compe--on? People want to make a be_er, happier, more holis-c workplace
Fit with another system • Quality • Lean • Environment • H&S • Con-nuous Improvement
Company vision, demonstrated by management
Ge\ng Staff buy-‐in
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ONE COMPANY’s APPROACH TO STAFF ENGAGEMENT Provide staff with nutri-ous lunches every day (staff pay $5/week) Recogni-on -‐ End of Financial Year Dinner (staff, partners & key members of supply chain) Based on the concept of “Losers have mee-ngs, Winners have Par-es” we book out a restaurant every July. Prin7ng Industry Craasmanship Awards Night – Take all staff to this black -e event and staff collect awards for their craasmanship. Work/Life Balance – six monthly interviews inc. holiday planning. Flexibility around work hours and -me off to fit in with life events. This sets up a WIN WIN environment where staff do whatever it takes to meet client deadlines knowing they will get paid back by having the flexibility to a_end key events of their children etc. Finish at 1pm every Friday – ‘Informal Lunch Mee-ng’ that informally discusses the week that was and the week coming up and also includes a short safety training component e.g. spill kit, loca-on of fire ex-nguishers. PIMMS – Produc7on Improvement Monthly Mee7ngs – run by the staff for the staff. Minutes are kept that have the -‐ who by when informa-on. All produc-on staff discuss Safety, Efficiency and the Environment and everything is filtered through this SEE principle (Safety, Efficiency & Environment).
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SUSTAINABILITY IS ABOUT MINIMISING WASTES
What do we do or ask our staff to do that does not add value to our businesses, our community and our clients?
What do we do, make, move or consume that no one values?
Do some Value Stream Mapping and you will find there is plenty
of -me and resources for all the important things.
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Ideas: • “Global Warmer of the week” • “Pimp my Bin” • “environmental Pledge” • Friday BBQ • Split efficiency savings – ½ on the christmas party or donate to charity
• Newsle_er, bulle-n • Changing the signs
Staff Engagement strategies.
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Discussion
■ Do you have a green team, sustainability committee or champion within your company already?
■ Good Staff Engagement Ideas?
■ Staff that would be good advocates?
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What skills required?
What training available?
Training and Development
Match skills with abili-es – don’t throw anyone in the deep end!
Make it relate to what you need already – ie Lean, Produc-vity, Team Development, Audit
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• How does your business “do” innova-on • Culture of Con-nuous Employment? • Staff encouraged to contribute ideas? • Ideas inves-gated, feedback provided? • Problem solving along the supply chain
Innova7on
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• Research industry best prac-ce? • Look at how you develop ideas? • Ask, Consult – inside and outside. • Scope out innova-ons • Collabora-on & Partnerships
– Problem solve with suppliers & Customers – Create sustainable products/services
• Systems thinking
Innova7on ideas
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■ TIME COMMITMENT n Will take some time, but look for synergy
■ KNOWLEDGE AND SKILLS n Getting to know your data n Opportunity Assessment – walk-through n Staff engagement and development: lean & green teams
■ DEVELOP PROJECT IDEAS AND BUSINESS CASE n Technical n Feasibility n Cost-benefit
■ NETWORKING WITH OTHER PARTICIPATING BUSINESSES – ATTENDING INDUSTRY EVENTS
■ RESEARCH
Energy and Materials efficiency: What’s Involved?
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ONTERRA CARPETS ■ Staff switch off equipment when not in use. Annual
Saving: $3,000 ■ Tuned gas burners, cut gas consumption by 4%.
Annual saving $5,000 ■ Leak minimisation for compressed air to reduce
continuous power requirements by 30%. Annual saving: $10,000
■ Light sensors and skylights in the factory. Annual saving: 6,000 kWh of electricity ($1,500 @ 24c/kWh)
GEOFABRICS AUSTRALIA ■ New Compressor, reducing kWh per kilogram from
1.28 to 1.17, saving 1,600 MWh per year and $240,000
■ Installed power factor correction equipment expected to save $30,000
Case Studies: Energy
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■ Natural light
Opportuni7es: Energy
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Opportuni7es: Materials
Nobody Denim n Purchase price of waste fabric = 20 times disposal cost n True cost of wasted product = 425 times disposal cost n New Cutting Machines increase fabric utilisation n Consolidation of other machines
Onterra Carpets n New Yarn Processing Equipment improved production
yield, with expected raw material savings of up to $500,000 per annum and a 15 month payback period
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Sustainable Value Stream Mapping • Mapping produc-on flow • Analysing electricity bills • Crea-ng ac-on plans:
– Consump-on and peak demand
• Monitors on Machines • Ligh-ng Retrofit Project
Case Study: Beaulieu of Australia Woven fabric manufacturer -‐ Jacquard weaving mill
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• Policy to use large energy consuming machines on alternate days
• Switching off ligh-ng in unused areas • Recycling Cones, Cardboard, Yarn • Energy savings of 5 – 10% for Stage 1 • Waste reduced by 16% • Efficiency Savings of $11,000, plus: • Peak electricity costs reduced by $1,000 per
month
Case Study: Beaulieu of Australia What did they do?
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Opportuni7es: Materials
Mattt n Source Correct Size fabrics, and design product to suit Australian Textile Mills n Dye Liquor concentration n Trim utilisation Flickers n Sent Trim to rope manufacturer
Beaulieu of Australia: n Recycling Cones, Cardboard, Yarn Northstate Carpet Mills, QLD: n Yarn Cutter Recycling n Punching Bags, Mattresses, Floor Covering
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What can you do today? No Cost: • Switch off unused computers and appliances – use reminder stickers. • Re-think start-up routines. • Air conditioning temperatures • Take advantage of Government programs • Talk to businesses that have done it before. • Set Targets: Electricity Price Rise % Low Cost: • Investigate appropriate lighting for next round of replacements. • Add lighting circuits to improve flexibility. • Check and dust air conditioning fan units. • Locate thermostats – are they near heat sources?
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Don’t just look for the incremental improvements
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Discussion ■ Are there opportunities in your business to make savings
through energy, water or waste efficiency?
■ Can any of those be done straight away?
■ Do you have the knowledge and skills within your company to start?
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Final Points ■ You don’t need to spend money to start
making good financial savings.
■ Your colleagues and staff will have great ideas about some simple and effective savings you can make.
■ There are businesses who have done this before.
■ Think about the incremental improvements, but look out for the transformational change!
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§ FREE SITE ASSESSMENTS n On your site n 2 hours + follow-up opportunities report n TOMORROW AVAILABLE
§ WEB RESOURCES n Fact Sheets n Case Studies
§ IMPLEMENT SOME PROJECTS
What’s next?
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• There is money to be saved through efficiency • There are other benefits to your business in
sustainability • You don’t have to spend money to start saving
money • You may have the skills and knowledge in your
business to do this • There are resources available to assist
SUMMARY
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Stay the Course..
A 2009 analysis from A.T Kearney found that “companies that show a ‘true’ commitment to sustainability appear to outperform their industry peers in the financial market”
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Please complete the Evalua7on Form.
Please see the website for our survey
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Website
www.tfia.com.au/energy-and-materials-efficiency